EXPERIENCE CO LIMITED — Interim / Quarterly Report 2016

Feb 28, 2016

ACN 167 320 470

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APPENDIX 4D AND HALF YEAR REPORT For the half-year ended 31 December 2015

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Appendix 4D and Half Year Report For the half year ended 31 December 2015

Contents

Appendix 4D	3
Directors' Report	4
Consolidated Statement of Profit or Loss and Other Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	8
Consolidated Statement of Cash Flows	9
Notes to the Financial Statements	10
Directors’ Declaration	15
Independent Auditor's Review Report	16
Auditor's Independence Declaration	18

2

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Skydive the Beach Group Limited and Controlled Entities

ACN: 167 320 470

Appendix 4D

for the half year ended 31 December 2015

Results for announcement to the market

	Half-year ended	Half-year ended
	31-Dec-15	31-Dec-14	Variance
	$'000	$'000	%
Revenue from ordinary activities	24,575	10,021	145.2%
Earnings before interest, taxes, depreciation and amortisation (EBITDA)*	4,486	2,180	105.8%
Profit after tax	2,640	770	242.7%
Profit after tax attributable to members of the parent entity	2,640	770	242.7%

Acquisition of NZone Skydive

On 30 October 2015, Skydive (New Zealand) Ltd, a wholly-owned subsidiary, acquired all the shares in Skydive Queenstown Ltd, Skydive Glenorchy Ltd and Parachute Adventure Queenstown Ltd, being companies registered and trading within New Zealand and collectively known and marketed as NZone Skydive, for the consideration of NZ$17million, including the purchase of loan accounts of NZ$2,021,902.

Commentary on the Results

Following the acquisition of Australia Skydive Pty Ltd on 31 March 2015, Skydive the Beach Group Limited operated 16 skydiving drop zones across New South Wales, Queensland, Victoria and Western Australia.

Since then, the Group successfully completed an Accelerated Non-Renounceable Entitlement Offer (ANREO), as announced on 14 October 2015, which raised a total of $19.6 million. These funds were primarily used to finance the acquisition of NZone Skydive, New Zealand's premier skydiving business in Queenstown, with two skydiving drop zones.

Presented in the directors' report is a summary of historical and current operating statistics and financial performance information which shows that actual tandem jumps increased by 128.9% and revenue increased by 145.2% compared to the same period last year. These results are partly due to the acquisition of Australia Skydive Pty Ltd, two months of trading following the acquisition of NZone Skydive, and continued growth of the original Group drop zones.

• EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (“AAS”) and represents the profit under AAS adjusted for specific non-cash and significant items. The directors consider EBITDA to reflect the core earnings of the consolidated entity. A reconciliation between EBITDA and profit after income tax for the half year ended 31 December 2015 is included in the directors' report.

Dividends

On 30 October 2015, a fully franked dividend of $0.01 per share was paid out of retained profits at 30 June 2015, amounting to $2,937,297.

There have been no other dividends paid or declared during the period.

Net Tangible Assets

Net Tangible Assets
	31-Dec-15	30-Jun-15
Net assets per share	0.14	0.11
Net tangible assets per share	0.09	0.09

Half Year Report

The half year report of Skydive the Beach Group Limited for the half year ended 31 December 2015 is attached.

Audit status

The accounts were reviewed by the Group's auditors whose report is attached as part of the half year report for the half year ended 31 December 2015.

Anthony Boucaut Chief Executive Officer

Anthony Ritter Chief Financial Officer

29 February 2016

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Directors' Report

The directors present their report on the consolidated entity (referred to herein as the Group) consisting of Skydive the Beach Group Limited and its controlled entities for the half year ended 31 December 2015.

The following persons were directors of Skydive the Beach Group Limited during or since the end of the period up to the date of this report:

William Beerworth Non-Executive Director and Chairman Anthony Boucaut Executive Director and Chief Executive Officer Timothy Radford Executive Director and Chief Operating Officer Anthony Ritter Executive Director and Chief Financial Officer John Diddams Non-Executive Director Dr. Nigel Finch Non-Executive Director (resigned 31/1/2016)

Principal Activities

The principal activity of the consolidated group during the period was the provision of skydiving experiences to the public, including tandem skydiving, night tandem skydiving, helicopter skydiving, learn to skydive courses, and skill development camps.

There were no significant changes in the nature of the consolidated group's principal activities during the period.

Operating Results and Review of Operations

Following the acquisition of Australia Skydive Pty Ltd on 31 March 2015, Skydive the Beach Group Limited operated 16 skydiving drop zones across New South Wales, Queensland, Victoria and Western Australia.

Since then, the Group successfully completed an Accelerated Non-Renounceable Entitlement Offer (ANREO), as announced on 14 October 2015, which raised a total of $19.6 million. These funds were primarily used to finance the acquisition of NZone Skydive, New Zealand's premier skydiving business in Queenstown, with two skydiving drop zones.

Presented below is a summary of historical and current operating statistics and financial performance information, including a comparison of actual results for the year ended 31 December 2015 against the same period last year and compared to the Group's forecast guidance issued 12 October 2015. The results for the six months to 31 December 2015 include two months contribution from NZone Skydive.

	Half-year	ended
	31-Dec-15	31-Dec-14	%	FY 2016
	Actual	Actual	Variance	Forecast
Tandem Jumps	58,386	25,502	128.9%	130,381
Revenue ($'000)	24,575	10,021	145.2%	54,900
EBITDA ($'000)	4,486	2,180	105.8%	13,500
EBITDA (%) *	18.25%	21.75%		24.59%

Actual tandem jumps increased by 128.9% and revenue increased by 145.2%. These results are partly due to the acquisition of Australia Skydive Pty Ltd, two months of trading following the acquisition of NZone Skydive, and continued growth of the original Group drop zones.

• EBITDA is a financial measure which is not prescribed by Australian Accounting Standards (“AAS”) and represents the profit under AAS adjusted for specific non-cash and significant items. The directors consider EBITDA to reflect the core earnings of the consolidated entity. A reconciliation between EBITDA and profit after income tax for the half year ended 31 December 2015 is included below.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) Plus: Interest received Less: Depreciation and amortisation Less: Finance costs Profit before tax Income tax expense Profit after tax	31-Dec-15 31-Dec-14 $'000 $'000 4,486 2,180 40 - (1,419) (511) (315) (389) Half-year ended
	2,791 1,279 (151) (509)
	2,640 770

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Directors' Report

Outlook for the year ending 30 June 2016

Outlook for the year ending 30 June 2016
	FY 2016	FY 2015	%
	Forecast	Actuals	Variance
Tandem Jumps	130,381	61,069	113.5%
Turnover ($'000)	54,900	26,320	108.6%
EBITDA ($'000)	13,500	6,025	124.1%
EBITDA (%)	24.6%	22.9%

The Directors consider that tandem jump numbers, revenue and EBITDA expectations for the financial year ending 30 June 2016 are realistic and attainable if weather patterns are normal. Key financial and operational performance information will be reviewed regularly and strategies developed to aid in the achievement of these targets.

Dividends

On 30 October 2015, a fully franked dividend of $0.01 per share was paid out of retained profits at 30 June 2015, amounting to $2,937,297.

There have been no other dividends paid or declared during the period.

Significant Changes in State of Affairs

On 30 October 2015, Skydive (New Zealand) Ltd, a wholly-owned subsidiary, acquired all the shares in Skydive Queenstown Ltd, Skydive Glenorchy Ltd and Parachute Adventure Queenstown Ltd, being companies registered and trading within New Zealand and collectively known and marketed as NZone Skydive, for the consideration of NZ$17million, including the purchase of loan accounts of NZ$2,021,902.

Events Subsequent to the End of the Reporting Period

On 1 February 2016, Skydive Investments Pty Ltd, a wholly-owned subsidiary, acquired land and buildings for consideration of $910,000 which is expected to be used solely for the purposes of carrying on business in the Group's skydiving operation at Mission Beach, Queensland.

ASIC Class Order 98/100 Rounding of Amounts

The company is an entity to which ASIC Class Order 98/100 applies and, accordingly, amounts in the financial statements and directors’ report have been rounded to the nearest thousand dollars.

Auditor's Independence Declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 can be found at page 18.

This report is made in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

Signed on behalf of the directors

Anthony Boucaut Chief Executive Officer

Anthony Ritter Chief Financial Officer

29 February 2016

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Consolidated Statement of Profit or Loss and Other Comprehensive Income for the half year ended 31 December 2015

Revenue Cost of sales Gross profit Other income Administration and corporate expenses Occupancy expenses Depreciation and amortisation expenses Marketing, advertising and agents commission Repairs and maintenance expenses Finance costs Other expenses Profit before income tax Income tax expense Net profit for the period Other comprehensive income: Items that will not be reclassified to profit or loss: Revaluation of property plant and equipment, net of tax Exchange differences on translation of foreign operations Total other comprehensive income Total comprehensive income for the period Earnings per share From continuing operations: Basic earnings per share (cents) Diluted earnings per share (cents)	Half Year Ended Half Year Ended 31 December 2015 31 December 2014 $000 $000 24,575 10,021 (14,076) (5,103) Consolidated Group
	10,499 4,918 228 295 (4,692) (762) (815) (389) (1,419) (511) (622) (1,077) (67) (119) (315) (389) (5) (686)
	2,791 1,279 (151) (509)
	2,640 770 20 - 50 -
	70 -
	2,710 770
	1.65 18.27 1.60 18.27

.

The accompanying notes form part of these financial statements.

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Skydive the Beach Group Limited and Controlled Entities

ACN: 167 320 470

Consolidated Statement of Financial Position as at 31 December 2015

Note ASSETS Current assets Cash and cash equivalents 2 Trade and other receivables Inventories Other current assets Current tax assets Total current assets Non-current assets Trade and other receivables Property, plant and equipment 5 Intangible assets 6 Other financial assets Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Deferred revenue Borrowings Provisions Derivative liability Current tax liabilities Total current liabilities Non-current liabilities Borrowings Deferred tax liabilities Provisions Total non-current liabilities Total liabilities Net assets Equity Issued capital 7 Retained earnings Reserves Total equity	As at As at 31 December 2015 30 June 2015 $000 $000 5,435 9,235 1,925 1,979 1,337 1,244 1,121 417 70 - Consolidated Group
	9,889 12,875
	1,681 1,735 39,656 26,883 18,278 7,624 27 27
	59,641 36,269
	69,530 49,144
	3,301 2,297 816 668 1,038 1,401 472 391 33 - 1,854 1,021
	7,514 5,778
	8,806 8,218 1,048 1,930 47 33
	9,900 10,180
	17,415 15,958
	52,115 33,185
	51,190 32,039 2,171 2,468 (1,246) (1,322)
	52,115 33,185

The accompanying notes form part of these financial statements.

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Consolidated Statement of Changes in Equity for the half year ended 31 December 2015

Note Consolidated Group Balance at 1 July 2014 Comprehensive income Profit for the period Other comprehensive income Total comprehensive income Transactions with owners, in their capacity as owners Retained earnings acquired in group reorganisation Total transactions with owners Balance as at 31 December 2014 Balance at 1 July 2015 Comprehensive income Profit for the period Other comprehensive income Total comprehensive income Transactions with owners, in their capacity as owners Issued shares 7 Transaction costs, net of tax impact Distributions paid or provided for 3 Movement in share options reserve Total transactions with owners Balance as at 31 December 2015	Issued Capital Retained Earnings Asset Revaluation Reserve Common Control Reserve Share Option Reserve Foreign Currency Translation Reserve Total $000 $000 $000 $000 $000 $000 $000 27 - - - - - 27 - 770 - - - - 770 - - - - - - -
	- 770 - - - - 770
	- 4,895 - - - - 4,895
	- 4,895 - - - - 4,895
	27 5,666 - - - - 5,692
	32,039 2,468 2,844 (4,171) 5 - 33,185 - 2,640 - - - - 2,640 - - 20 - - 50 70
	- 2,640 20 - - 50 2,710
	20,055 - - - - - 20,055 (904) - - - - - (904) - (2,937) - - - - (2,937) - - - - 6 - 6
	19,151(2,937) - - 6 - 16,220
	51,190 2,171 2,864(4,171) 11 50 52,115

The accompanying notes form part of these financial statements.

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Consolidated Statement of Cash Flows for the half year ended 31 December 2015

Note Cash flows from operating activities Receipts from customers Payments to suppliers and employees Finance costs Income tax paid Net cash provided by operating activities Cash flows from investing activities Payments for property, plant and equipment Payments for other non-current assets Proceeds from disposal of plant and equipment Payments for business acquisitions Cash acquired in the group reorganisation Cash acquired in business acquisitions Net cash used in investing activities Cash flows from financing activities Proceeds from issued capital Transaction costs associated with share issue Dividends paid Loans to related parties Loan repayments from related parties Repayment of borrowings Proceeds from borrowings Net cash provided by financing activities Net (decrease)/increase in cash held Cash at beginning of the period Cash at end of the period 2	Half Year Ended Half Year Ended 31 December 2015 31 December 2014 $000 $000 24,557 7,936 (21,793) (6,509) (315) (389) (210) (274) Consolidated Group
	2,239 763
	(8,934) (1,546) (253) (400) 352 - (13,714) - - 1,192 243 -
	(22,306) (754)
	19,582 - (903) - (2,937) - (195) - 495 - (1,102) - 1,326 1,419
	16,266 1,419
	(3,801) 1,428 9,235 17
	5,435 1,445

The accompanying notes form part of these financial statements.

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the half year ended 31 December 2015

1 Significant Accounting Policies

Statement of compliance

The half-year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 and AASB 134 Interim Financial Reporting. Compliance with AASB 134 ensures compliance with International Financial Reporting Standard IAS 34 Interim Financial Reporting. The half-year report does not include notes of the type normally included in an annual financial report and shall be read in conjunction with the most recent annual financial report.

Basis of preparation

The condensed consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of certain noncurrent assets and financial instruments. Cost is based on the fair values of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company's 2015 annual financial report for the financial year ended 30 June 2015, except for the impact of the Standards and Interpretations described below. These accounting policies are consistent with Australian Accounting Standards and with International Financial Reporting Standards.

Critical Accounting Judgements, Estimates and Assumptions

The preparation of the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the amount of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. All critical accounting estimates and judgements are consistent with those applied and included in the annual financial report for the year ended 30 June 2015 other than those reflected below:

Useful Lives and Residual Values of Aircraft

The determination of the residual values and useful lives of aircraft requires significant judgement on the part of the directors and is subject to estimation uncertainty. All aircraft were revalued in the 2015 financial year. As a result, management have re-evaluated the accounting estimates in terms of the expected pattern of consumption of the aircraft, the remaining useful lives and their estimated residual values. In contemplation of the above, management have determined that depreciation for aircraft engines should be calculated on an hours flown basis, and aircraft frames and fuselage on a straight line basis over their expected useful lives which are assessed annually. In addition, management has re-estimated the residual values for both aircraft frames and engines. This represents a change in accounting estimate and no retrospective adjustments have been made in this regard.

The Group has adopted all of the new and revised Standards and Interpretations issued by the Australian Accounting Standards Board (the AASB) that are relevant to their operations and effective for the current period.

There are no new and revised Standards and amendments thereof and Interpretations effective for the current reporting period.

The adoption of all the new and revised Standards and Interpretations has not resulted in any changes to the Group's accounting policies and did not have any significant impact on the amounts reported for the current or prior periods.

2 Reconciliation of Cash and Cash Equivalents Cash on hand Cash at bank Cash at the end of the period as shown in the statement of cashflows is reconciled to the items in the statement of financial position as follows:	31-Dec-15 31-Dec-14 $000 $000 13 18 5,422 1,427 Consolidated Group
	5,435 1,445

3 Dividends

A final fully franked dividend of $0.01 per share was paid on 30 October 2015 out of retained profits at 30 June 2015, amounting to $2,937,297.

No other dividends have been paid or declared.

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the half year ended 31 December 2015

4 Acquisition of Controlled Entities

On 30 October 2015, Skydive (New Zealand) Ltd, a wholly-owned subsidiary, acquired all the shares in Skydive Queenstown Ltd, Skydive Glenorchy Ltd and Parachute Adventure Queenstown Ltd, being companies registered and trading within New Zealand and collectively known and marketed as NZone Skydive, for the consideration of NZ$17million, including the purchase of loan accounts of NZ$2,021,902.

• (i) Fair value of purchase consideration:

Consisting of: - Cash consideration - Shares issued Total consideration Cash consideration Cash outflow Assets and liabilities held at acquisition date: - Current assets - Non-current assets - Current liabilities - Non-current liabilities Goodwill on consolidation Non-controlling equity interests in acquisition	13,714 473
	14,187
	13,714
	13,714
	542 11,459 (521) (1,822)
	9,658
	4,528 -
	14,187

5 Property, Plant and Equipment

										Consolidated Group	Consolidated Group
										As at	As at
										31-Dec-15	30-Jun-15
										$000	$000
Plant and equipment:
At cost										7,416	7,168
Accumulated depreciation										(1,740)	(1,127)
										5,676	6,041
Leasehold improvements:
At cost										1,302	935
Accumulated depreciation										(418)	(299)
										884	636
Aircraft:
At revalued amounts										33,313	19,239
Accumulated depreciation										(1,649)	(173)
										31,664	19,066
Motor vehicles:
At cost										1,857	1,248
Accumulated depreciation										(649)	(237)
										1,208	1,011
Office equipment:
At cost										559	429
Accumulated depreciation										(387)	(300)
										172	129
Land and buildings
At cost										52	-
Accumulated depreciation										-	-
										52	-
Total property, plant and equipment										39,656	26,883
a) Movements in Carrying	Amounts
	Plant &		Leasehold					Office		Land and
	Equipment		Improvements		Aircraft		Motor Vehicles	Equipment		buildings	Total
	$000		$000		$000		$000	$000		$000	$000
Opening balance	6,041		636		19,066		1,011	129		-	26,883
Additions through business		99	242		5,397		55	10		-	5,803
combinations
Additions		855	27		7,464		225	64		52	8,688
Revaluations		20		-		-	-		-	-	20
Disposals		-		-	(423)		(18)		-	-	(441)
Transfers between classes	(936)			-		928	-	(1)		-	(8)
Depreciation expense	(403)		(22)		(769)		(66)	(29)		-	(1,289)
Closing balance	5,676		884		31,664		1,208	172		52	39,655

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the half year ended 31 December 2015

6 Intangible Assets

Goodwill: Cost Accumulated impaired losses Trademarks, trade names and licences: Cost Accumulated amortisation and impairment losses Computer software: Cost Accumulated amortisation and impairment losses Customer relationships and other intangible assets: Cost Accumulated amortisation Total property, plant and equipment a) Movements in Carrying Amounts Closing balance Transfers between classes Opening balance Additions through business combinations Additions Disposals Amortisation expense	As at As at 31-Dec-15 30-Jun-15 $000 $000 8,107 3,569 - - 8,107 3,569 5,330 2,000 - - 5,330 2,000 427 301 (118) (54) 309 247 4,622 1,831 (90) (23) 4,532 1,808 18,278 7,624 Goodwill Trademarks, trade names & licences Computer Software Customer relationships and other Total $000 $000 $000 $000 $000 3,569 2,000 247 1,808 7,624 4,538 3,331 - 2,317 10,185 - - 125 475 599 - - - - - - (1) 1 - - - - (64) (67) (131) Consolidated Group	As at As at 31-Dec-15 30-Jun-15 $000 $000 8,107 3,569 - - Consolidated Group
		8,107 3,569
		5,330 2,000 - -
		5,330 2,000
		427 301 (118) (54)
		309 247
		4,622 1,831 (90) (23)
		4,532 1,808
		18,278 7,624
	8,107 5,330 309 4,532 18,278

7 Issued Capital

Balance at the end of the reporting period Shares issued during the period 360,579,941 (June 2015: 293,729,700) fully paid ordinary shares At the beginning of the reporting period	As at As at 31-Dec-15 30-Jun-15 $000 $000 51,190 32,039 Consolidated Group
	No. No. 293,729,700 26,618,080 66,850,241 267,111,620
	360,579,941 293,729,700

On 20 October 2015, 62,042,836 shares were issued at $0.30 each to shareholders and institutional investors on the basis of 2 shares for every 9 shares held.

On 30 October 2015, 1,576,974 shares were issued at $0.30 each as part of the acquisition of skydiving operations in New Zealand.

On 2 November 2015, 3,230,431 shares were issued at $0.30 each to retail shareholders on the basis of 2 shares for every 9 shares held.

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Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the half year ended 31 December 2015

8 Segment information

Identification of reportable segments

The Group has identified its operating segments based on the internal reports that are reviewed and used by the board of directors in assessing performance and in determining the allocation of resources.

The Group's financial performance is examined primarily from a geographical perspective and operating segments have therefore been determined on the same basis.

The Group has identified the following reportable segments:

• Australia

• New Zealand

The following is an analysis of the Group's revenue and results by reportable operating segment for the period under review:

(i) Segment performance

(i) Segment performance	Segment performance
Revenue Sales revenue Other income Total segment revenue Reconciliation of segment result to group net profit/loss before tax Segment net profit/(loss) loss before tax Inter-segment elimination Net profit/(loss) before tax from continuing operations Income tax expense Total profit/(loss) after tax Finance costs Inter-segment elimination Total finance costs Depreciation and amortisation expense Revenue Sales revenue Other income Total segment revenue Reconciliation of segment result to group net profit/loss before tax Segment net profit/(loss) loss before tax Income tax expense Total profit/(loss) after tax Finance costs Depreciation and amortisation expense (ii) Segment assets Segment assets Segment assets (iii) Segment liabilities Segment liabilities Segment liabilities 31 December 2015 31 December 2015 30 June 2015 30 June 2015 31 December 2015 31 December 2014	31 December 2015	Australia New Zealand Total $000 $000 $000
	Revenue Sales revenue Other income Total segment revenue Reconciliation of segment result to group net profit/loss before tax Segment net profit/(loss) loss before tax Inter-segment elimination Net profit/(loss) before tax from continuing operations Income tax expense Total profit/(loss) after tax Finance costs Inter-segment elimination Total finance costs Depreciation and amortisation expense 31 December 2014	22,022 2,553 24,575 349 2 352
		22,371 2,555 24,803
		2,105 686 2,791 (124) 124 -
		1,981 810 2,791 (187) 36 (151)
		1,794 846 2,640
		315 124 439 (124)
		315 124 315
		1,315 104 1,419
	Revenue Sales revenue Other income Total segment revenue Reconciliation of segment result to group net profit/loss before tax Segment net profit/(loss) loss before tax Income tax expense Total profit/(loss) after tax Finance costs Depreciation and amortisation expense Segment assets 31 December 2015	10,021 - 10,021 295 - 295
		10,316 - 10,316
		1,279 - 1,279 (509) -
		(509) - -
		389 - 389 511 - 511
	Segment assets 30 June 2015	58,115 12,217 70,332
		49,144 - 49,144
	Segment liabilities 30 June 2015	6,398 11,819 18,217
	Segment liabilities	15,958 - 15,958

13

Skydive the Beach Group Limited and Controlled Entities ACN: 167 320 470

Notes to the consolidated financial statements for the half year ended 31 December 2015

9 Contingent Assets and Contingent Liabilities

The Group had no contingent assets or contingent liabilities as at 31 December 2015.

10 Events After the End of the Period

On 1 February 2016, Skydive Investments Pty Ltd, a wholly-owned subsidiary, acquired land and buildings for consideration of $910,000 which is expected to be used solely for the purposes of carrying on business in the Group's skydiving operation at Mission Beach, Queensland.

11 Company Details

The registered office and principal place of business is:

1/51 Montague Street

NORTH WOLLONGONG NSW 2500

14

Skydive the Beach Group Limited and Controlled Entities

ACN 167 320 470

Directors’ Declaration

In accordance with a resolution of the directors of Skydive the Beach Group Limited, the directors of the company declare that:

1. The financial statements and notes, as set out on pages 6 to 14:

2. (a) comply with Accounting Standard AASB 134: Interim Financial Reporting; and

(b) give a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the period ended on that date.

1. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

Anthony Boucaut Anthony Ritter Chief Executive Officer Chief Financial Officer

29th February 2016

15

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INDEPENDENT AUDITOR’S REVIEW REPORT

TO THE MEMBERS OF

SKYDIVE THE BEACH GROUP LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Skydive the Beach Group Limited and controlled entities which comprises the condensed statement of financial position as at 31 December 2015, the condensed statement of comprehensive income, condensed statement of changes in equity and condensed statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration of the consolidated entity comprising the company and the entities it controlled at the half-year end or from time to time during the halfyear.

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the half-year financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Skydive the Beach Group Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations act 2001 , which has been given to the directors of Skydive the Beach Group Limited would be in the same terms if given to the directors as at the time of this auditor’s report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Skydive the Beach Group Limited is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2015 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 .

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RSM AUSTRALIA PARTNERS

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Sydney NSW Dated: 29 February 2016

G N SHERWOOD Partner

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AUDITOR’S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Skydive the Beach Group Limited for the half year ended 31 December 2015, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

• (i) the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• (ii) any applicable code of professional conduct in relation to the review.

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RSM AUSTRALIA PARTNERS

G N SHERWOOD Partner Sydney NSW Dated: 29 February 2016

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